The bill H.712 proposes an increase in the Uniform Capacity Tax on solar generation and storage facilities in Vermont, raising the tax from $4.00 to $16.00 per kW for solar power plants and from $0.50 to $2.00 per kWh for stationary grid-connected energy storage facilities with a capacity of 600 kWh or larger. The new revenue generated from this tax will be split equally, with half directed to the Education Fund and the other half allocated to a newly established Farm Security Special Fund. This fund aims to provide grants to farms that experience financial losses due to adverse weather conditions.

Additionally, the bill outlines the creation of the Farm Security Special Fund, which will be administered by the Secretary of Agriculture, Food and Markets. The fund will consist of various sources, including the new tax revenue, and will provide grants to farms for up to 50% of uninsured losses caused by eligible weather conditions, with a maximum award of $150,000 per year per farm. The bill also establishes a Farm Security Special Fund Review Board to oversee the grant process and ensure the fund meets the needs of Vermont's agricultural community. The act is set to take effect on July 1, 2026.

Statutes affected:
As Introduced: 32-8701, 16-4025, 6-207